ECONOMICS
ECONOMIC INSTITUTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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combination of companies that control the production or distribution of a product or service
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includes jobs with large firms holding dominant positions within their industries
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set of organizations that determine how goods and services are produced and distributed
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network of unrelated businesses operating under one umbrella
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system in which political decisions are made as a result of bargaining and compromise among special-interest groups
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Detailed explanation-1: -An oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence.
Detailed explanation-2: -Oligopolistic market structure can be best described with the kinked demand curve model. The kinked demand curve model contends that the prices in an oligopoly will be relatively stable. It provides an explanation of how firms in an oligopoly might compete.
Detailed explanation-3: -By acting together, oligopolistic firms can hold down industry output, charge a higher price, and divide the profit among themselves. When firms act together in this way to reduce output and keep prices high, it is called collusion.
Detailed explanation-4: -OPEC is the best example of oligopoly.